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Suppose you have invested only in two stocks, A and B. You expect that returns on the stocks depend on the following three states of
Suppose you have invested only in two stocks, A and B. You expect that returns on the stocks depend on the following three states of economy, which are equally likely to happen. State of the economy Return on stock A, % Return on stock B, % Bear -2 -5 Normal 13 -1 Bull 2 20 Calculate the correlation between the two stocks. Round your answer to 4 decimal places
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